Media Coverage
Source: Governance Intelligence
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
07.09.26
In a request for comment, the SEC said it wants feedback on ETFs that invest in innovative asset classes or use novel investment strategies, such as prediction markets, to determine how the market can continue to evolve while protecting investors, maintaining fair and orderly markets and supporting capital formation.
The review reflects rising regulatory attention on products outside traditional ETF structures. In recent months, the SEC has scrutinized proposals involving highly leveraged strategies and funds linked to prediction markets, underlining concerns about investor protection, risk management and the appropriate treatment of emerging investment products.
Pillsbury partner David Oliwenstein, a former SEC Division of Enforcement lawyer who leads the firm’s Securities Enforcement practice, told Governance Intelligence that prediction markets ‘seem ripe for enforcement scrutiny’ because they ‘check many boxes for Chairman Atkins and the SEC under the Trump administration,’ including the potential for retail investors to suffer substantial losses over short periods.
Oliwenstein said the current Commission has expressed a desire to ensure that rules and regulations keep pace with technological innovation, adding that Atkins is acting consistently with his stated intention of providing market participants with ‘clear rules of the road’ and that the announcement ‘seems to be in furtherance of that goal.’
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